Yahoo struck a long-awaited deal to sell half its stake in Alibaba back to the Chinese company. The WSJ's Deborah Kan speaks to reporter Paul Mozur on why this is a good deal for Alibaba.

This transcript has been automatically generated and may not be 100% accurate.

... the ... AGL says ... about half a day in Alibaba back to the Chinese company ... joining me now on the Azure reporter in PJ ... a kick off a lot of people in and talk about this deal for a long time and it looks like it's finally getting off the ground ... yeti and this is been the sort of final step in a long long process and um ... you know Braley bow but this is been about two gaining some on tiny meaning getting high Yahoo bid ... on or off the board is delighted dissension and I've really been a roughly relationship for the past few years ... I said to be very relieved to finally get this deal done ... a K and ... E I du lowlands still in its stake in Alibaba lab that one ... is due to the relationship between the two going for ... um well I mean certainly debate over the starting from a good base of the relationships in pretty pretty bra from when your former Yahoo and Carol Bartz first met Jack Ma was ahead of a Alibaba back in three years ago ... aam she knew we criticize them for downplaying Yahoo ... ID at this website in China and and since then there's another spats over inference the Sally K which is ... of the Ballake service the jacket right to take ... on into a different company without knew from talking to the board prefers ... I'm so there's quite a bit of dissent about that with the new Yahoo Softbank another major investor from Japan and Alibaba and Protected talks about how to deal with that situation ... going for it it should give them more autonomy is as yet his presence on the board becomes less significant ... OK NY outlined in the on line so that it's taken first place ... I will free and reduced the number of good reasons to sell the stake out their regional investing and was one billion back in two thousand five it's taken out of you know that's worth roughly fourteen billion ... years selling seven billion and are right now so that's a pretty good return on investment I also forgot to its been tough times and um there's a fair bit of pressure just to give investors better returns on ... and you know selling off some of the state allows them to do a large share buyback perspective muni Werder five billion ... on just a you know give investors some returns on in investors have been pretty upset with how things are going to get going and finally people say that will help them to concentrate on their core Internet business to get away from on ... his reputation which is that ... they're just a holding company for Alibaba to some degree ... then there's been a lot of talk around Alibaba actually launching an IPO on any word on the ... um well it ... sort of the issue here is that on in this statement today Jack Ma said his talk specifically about aam denied killing the future and in the state in the agreement is well their specific language about aam if there is a IIa agreement before twenty fifty twenty fifteen to go public ... on Howley Baba can buy back another ten percent of the company from Yahoo which is incentive ... for Alibaba who wants more autonomy ... on at the same time their actions taken private in arm of listed on Hong Kong Alibaba dot com ... aam with da da aam some people argue that there was the whole company then is one is that having one company trading him in Hong Kong meeting of the group ... company trading somewhere else ... I'm so these are all small steps that Alibaba hasn't said much about the full timing of ... when they would actually do an IPO but one thing's for certain it's can be a large one when it comes up on rate now they're looking at him thirty five billion valuation according to ... aam some hedge funds and unit that can grow in the future so people are looking even fifteen billion above going into the future when they actually do get around to going public ... okay now now it ... has consolidated power what's next in terms of strategy ... um in terms of strategy and they really are the dominant player in e-commerce in China and that's a large large industry because this Chinese said Tom you know gone gone opted to go shopping when got more disposable well ... I love the skip certain chain store phenomenon is that you have in America ... so the a lot of shopping is actually done online and in Alibaba really controls that are going for that kind of more investment into building up the backside the infrastructure side that you need to sort of support on a good thriving e-commerce business ... super them alive is just staying above water keep in under served dominant share ... at the same time they tried to sort of moved out into other areas of the unit became immobile ... operating system that they tried to launch so far not much except that success but we see all the major Chinese in a company's doing that soon expect to see them buying in in in other areas with ... large rivals like Baidu and Tencent and some these major players